TL;DR
- Finom raised €115 million (~$133 million) in a Series C equity round led by AVP.
- The raise comes just weeks after a $105 million non-dilutive investment from General Catalyst.
- Finom serves SMBs across Europe with banking, invoicing, and AI-driven accounting tools.
- The funding will support market expansion, AI integration, and potential acquisitions.
- With 125,000 users, Finom aims to reach one million business customers by 2026.
Finom Doubles Down on European SMB Market with Series C Raise
Amsterdam-based Finom has successfully closed a €115 million ($133 million) Series C equity round as it accelerates efforts to serve Europe’s vast population of small and medium-sized businesses (SMBs). The raise, confirmed by TechCrunch, follows a $105 million growth investment earlier this year from General Catalyst—marking two major funding milestones in close succession.
Finom’s business model revolves around offering a one-stop financial platform that includes banking, invoicing, and increasingly, AI-powered accounting. CEO Andrey Petrov highlighted the vision behind these tools: to eliminate the need for a human accountant altogether. “Because theoretically, entrepreneurs don’t need to have an accountant at all,” he said.
With the fresh capital, the fintech aims to scale into Europe’s major SMB markets, deploy AI across its internal operations, and explore strategic acquisitions to expand product capabilities.
New and Existing Investors Show Confidence
The Series C was led by AVP (formerly AXA Venture Partners) and included participation from Headline Growth, along with returning backers Cogito Capital, General Catalyst, and Northzone.
These investors are buying into Finom’s mission to digitally transform financial workflows for Europe’s 26 million SMBs. The company believes it can fill the void left by both traditional banks and large fintechs that are often too broad in focus.
“This is a vote of confidence in our long-term roadmap,” said Petrov, pointing to new markets and features enabled by the raise.
Finom vs. Other Challenger Banks
| Company | Total Funding Raised | Core Markets | Focus Area |
| Finom | ~$346M | Netherlands, France, Italy, Spain | SMBs, accounting, invoicing |
| Qonto | ~$700M | France, Germany | SMB banking |
| Revolut | ~$2B+ | Global | Retail + business |
| Monzo/N26 | $1B+ | UK/EU | Neobank services |
A Non-Traditional Funding Strategy
Part of what makes Finom’s capital stack unique is the non-dilutive $105 million investment from General Catalyst’s Customer Value Fund (CVF). Unlike equity rounds, this capital does not give up ownership but is allocated specifically for growth initiatives—primarily marketing.
Chairman and co-founder Kos Stiskin revealed that the CVF funding alone could have been enough to reach profitability. Yet, the firm chose to proceed with an equity round to attract fresh capital and potentially elevate its valuation.
“One took longer than expected, and one was much faster,” Stiskin said of the two deals.
Although Finom did not disclose the exact valuation, it claims the current figure is double that of its 2024 $54 million Series B valuation.
Growing Through AI, Credit, and Strategic Acquisitions
With a current user base of 125,000, Finom is eyeing 1 million SMB customers by 2026. To get there, the startup is expanding in both horizontal services (deposits, loans) and vertical integration (from banking to tax filing).
The company added lending services in the Netherlands, which it views as a testing ground for more credit offerings across Europe.
AI is playing a central role—not just in products like automated accounting, but internally. Petrov said the company is now onboarding AI agents to support teams in business and technical roles, allowing for more streamlined scaling.
“We’re hiring less than we need because we’re adding new types of AI agents,” said Petrov.
Acquisition Strategy and Market Shift
While Finom has made only one acquisition so far—Kapaga in 2022—it now plans to pursue opportunistic acquisitions that align with its core mission. The Kapaga acquisition helped enable cross-border payments and hinted at U.K. expansion plans. However, the company has since shifted focus to continental Europe, citing fewer fintech competitors and underserved SMBs.
In terms of regulatory posture, Finom operates under an Electronic Money Institution (EMI) license in countries like the Netherlands, France, Italy, and Spain. In Germany, it partners with Solaris, which holds a full banking license.
Leadership and Long-Term Vision
Finom’s four co-founders have evolved their roles over time, with Andrey Petrov now serving as sole CEO. Former co-CEOs Yakov Novikov and Oleg Laguta now act as advisors, along with Stiskin. All previously co-founded Modulbank in Russia, but are now fully focused on European markets.
Their collective vision is to empower SMBs with streamlined, AI-enabled financial tools and challenge both legacy banks and overfunded fintech rivals.
“SMBs are the backbone of the European Union economy,” Stiskin emphasized.
Conclusion
Finom’s €115 million Series C marks a significant moment in Europe’s competitive fintech landscape. Its unique blend of AI innovation, strategic capital structure, and SMB-first platform positions it as a serious contender against incumbents and challengers alike. With further expansion, acquisitions, and product launches on the horizon, Finom is charting a path to becoming a key financial infrastructure player for Europe’s entrepreneurs.
